Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q2 FY2013 Earnings Presentation
30 slides from Tata Steel's earnings presentation, Nov 9, 2012
Slide 1: Consolidated Financial Results Quarter Ended 30th September 2012 – Analyst Meet Presentation
9th November, 2012 Consolidated Financial Results Quarter Ended 30th September 2012 Analyst Meet Presentation
Slide 2: Tata Steel Group – Safety Performance
Tata Steel Group – Safety Performance Lost Time Injury Frequency (LTIF) Road traffic fatality at 3.5 Kalinganagar project in 3.06 3 early July'12 addressed by 2.35 improved road management 2.5 2.10 controls 2 1.5 1.31 Reduction continues in lost 0.95 1 0.78 0.68 time injuries with H1 0.59 0.5 pe
Slide 3: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 3
Slide 4: Global Market Environment
Global Market Environment China PMI Trend 60 Global crude steel production & capacity utilisation 140 100% 55 PMI Crude steel production (Mt, LHS) 130 Capacity utilisation (%, RHS) 90% 120 50 110 80% 45 100 Dec-10 Jul-11 Jul-12 May-11 Jan-12 May-12 Mar-11 Nov-11 Mar-12 Oct-10 Sep-11 Sep-12 70% 90 So
Slide 5: Raw Materials and Steel Prices
Raw Materials and Steel Prices Steel mills stocks of iron ore (in kt) Iron ore fines, US$/tonne 200 150 100 50 Spot CFR China (62%) Contract FOB Brazil 0 2010 2011 2012 2013 Source: CRU Source: Mysteel, Credit Suisse Research Hard coking coal, US$/tonne HRC spot price, US$/tonne 350 300 250 200 150
Slide 6: India & South East Asian Economy and Steel Market
India & South East Asian Economy and Steel Market GDP and IP growth in India (y/y %) PMI’s for India and SEA countries Forecast by OE 20 GDP 60 Industrial production 15 55 10 Expansion 5 50 Contraction 0 2008 2009 2010 2011 2012 2013 45 -5 India Indonesia Singapore Vietnam -10 40 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 7: European Economy and Steel Market
European Economy and Steel Market GDP growth in Eurozone and UK Apparent finished steel demand (Mt per q.) Flat products 6% 30 Forecast by Eurofer Long products 4% -19% 2% 25 0% 2007 2008 2009 2010 2011 2012 2013 -2% 20 -4% Eurozone (Y/Y % chg) -30% -6% UK (Y/Y % chg) 15 Eurozone (Q/Q % chg) -8% UK
Slide 8: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 8
Slide 9: Performance of Tata Steel India Q2 FY13
Performance of Tata Steel India Q2 FY13 Production (MT) Deliveries (MT) 1.87 1.73 1.74 1.65 1.71 1.59 Q2 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q1 FY13 Q2 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 1,731 532 528 1,685 505 1,554 Q2 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q1 FY13 Q2 FY13 9 Conversion Rate INR/USD – 52.855
Slide 10: Performance of Tata Steel India Profit & Loss Statement
Performance of Tata Steel India Profit & Loss Statement Particulars in Rs. Crores Q2 FY13 Q1 FY13 1 Income from operations a) Net sales / income from operations (net of excise duty) 9,034.20 8,820.19 b) Other operating income 116.36 87.84 Total income from operations (net) [ 1(a) + 1(b) ] 9,150.56 8
Slide 11: Performance of Tata Steel India Balance Sheet
Performance of Tata Steel India Balance Sheet Particulars in Rs. Crores As at 30.09.2012 As at 31.03.2012 A EQUITY AND LIABILITIES (1) Shareholders' funds 54,175.58 52,621.36 (a) Share capital 971.41 971.41 (b) Reserves and surplus 53,204.17 51,649.95 (2) Hybrid Perpetual Securities 2,275.00 2,275.0
Slide 12: Performance of Tata Steel India Longs, Flats and FAMD
Performance of Tata Steel India Longs, Flats and FAMD Sales and Realizations in Longs and Flats Ferro Alloys and Mineral Division (FAMD) 1800 1400 1,261 1,260 60 1200 1,091 50 1500 1000 36 1200 914 1007 36 40 896 800 900 30 600 19 600 360 20 400 311 734 268 300 690 723 10 200 0 0 0 Q2 FY12 Q1 FY13 Q
Slide 13: Performance of South East Asia Q2 FY13
Performance of South East Asia Q2 FY13 Deliveries (MT) Production (MT) 0.73 0.70 0.79 0.77 0.72 0.63 Q2 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q1 FY13 Q2 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 663 18 638 590 5 4 Q2 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q1 FY13 Q2 FY13 13 Conversion Rate INR/USD – 52.855
Slide 14: South East Asia – An Update
South East Asia – An Update NatSteel Holdings Singapore: Downstream sales surpassed the rate of 500 ktpa level with record production in CAB and Mesh Construction boom on the horizon with S$55 bn of transport projects expected to drive growth Vietnam: Operations have begun to stabilize with
Slide 15: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 15
Slide 16: Performance of Tata Steel Europe Q2 FY13
Performance of Tata Steel Europe Q2 FY13 Production (MT) Deliveries (MT) 3.53 3.53 3.57 3.42 3.34 3.21 Q2 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q1 FY13 Q2 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 4,003 3,861 3,843 117 96 (8) Q2 FY12 Q1 FY13 Q2 FY13 Q2 FY12 Q1 FY13 Q2 FY13 16 Conversion Rate USDINR – 52.855
Slide 17: Tata Steel Europe EBITDA bridge H1 FY13 vs H1 FY12
Tata Steel Europe Limited EBITDA bridge H1 FY13 vs H1 FY12 329 GBP mn 236 100 71 (116) (37) (355) (86) H1 FY12 Selling Prices Cost Changes Margin Volume Performance One Offs H1 FY13 Improvements 17
Slide 18: Tata Steel Europe Capital expenditure program
Tata Steel Europe Capital expenditure program Capital Expenditure vs Depreciation (£m) Enhancing process 500 462 450 reliability 400 349 333 Improving capability 350 310 300 of lines to produce 257 250 216 differentiated 192 200 products 150 150 100 Investing in energy 50 efficiency schemes 0
Slide 19: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 19
Slide 20: Group Financial Highlights H1 FY13
10.00 Group Financial Highlights H1 FY13 Deliveries Mn T Turnover US$ Mn 12.2 12,449 12,857 11.7 6.12 Q2 6,205 Q2 6,458 Q2 Q2 6.07 6.05 5.68 6,244 6,399 Q1 Q1 Q1 Q1 H1 FY12 H1 FY13 H1 FY12 H1 FY13 EBITDA US$ Mn PAT * US$ Mn 1,531 1,052 Q2 572 1,142 40 Q2 Q2 464 1,012 Q1 959 Q1 Q1 677 44 Q1 113 Q2 H1
Slide 21: Tata Steel Group Profit & Loss Statement
Tata Steel Group Profit & Loss Statement Particulars in Rs. Crores Q2 FY13 Q1 FY13 1 Income from operations a) Net sales / income from operations (net of excise duty) 33,867.32 33,547.73 b) Other operating income 265.41 273.47 Total income from operations (net) [1(a) + 1(b)] 34,132.73 33,821.20 2 Ex
Slide 22: Tata Steel Group Balance Sheet
Tata Steel Group Balance Sheet Particulars in Rs. Crores As at 30.09.2012 As at 31.03.2012 A EQUITY AND LIABILITIES (1) Shareholders' funds 42,629.74 43,021.12 (a) Share capital 971.41 971.41 (b) Reserves and surplus 41,658.33 42,049.71 (3) Preference shares issued by subsidiary companies 22.43 22.4
Slide 23: Net Debt Movement
Net Debt Movement Net Debt Movement (US$ mn) US$ mn 1705 1549 507 12349 12254 11332 (1546) (255) (1039) 10437 10056 (1816) (382) Gross Debt Loans Loans Reval. Gross Debt Loans Loans Reval. Gross Debt Cash & Net Debt Forward Underlying Mar 12 taken repaid Impact June 12 taken repaid Impact Sept 12 Ca
Slide 24: Tata Steel Europe - Pensions Management Update
Tata Steel Europe - Pensions Management Update Figures in £ mn Sep-11 Jun-12 Sep-12 Total Scheme Retirement Benefit Assets 16,164 16,891 17,132 Total Scheme Retirement Benefit Liabilities (16,058) (16,853) (17,098) Net Pension Surplus (BSPS &SPH) 106 38 34 Pension Asset Composition – BSPS £ mn 1% 2%
Slide 25: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 25
Slide 26: 3 MTPA Expansion at Jamshedpur
3 MTPA Expansion at Jamshedpur LD#3 – Ladle Furnace Raw Material Handling System ‘I’ Blast Furnace reached 90% of its rated capacity in Sept’12 LD#3 & TSCR: 1st stream – Production started 2nd stream – 2nd line of Tunnel Furnace lit up Hot Trials for 2nd Caster & 2nd Converter started Pr
Slide 27: Odisha Project
Odisha Project Sinter Plant Coke Oven Blast Furnace Civil and construction work progressing at a fast pace All the equipments, machinery etc. required for the first phase has been ordered Environmental and other required clearances have been obtained Commissioning scheduled forFY15 Structura
Slide 28: Benga Project at Mozambique
Benga Project at Mozambique Coal Handling and Preparation Plant (CHPP) commissioned in Mar’12 Tailings dam completed Stage 1 potential (on coal chain capacity being in place): 5.3Mtpa Run of Mine (ROM) 1.5Mtpa hard coking coal product 0.9Mtpa thermal coal product Power supply from the
Slide 29: Business Outlook
Business Outlook Overcapacity and low utilisation rates continue to weigh down steel prices and steelmakers’ margins Steel prices continue to remain soft in the developed countries European economy is expected to contract in 2012 with only marginal growth predicted in 2013. Austerity measures
Slide 30: Thank You
qb TATA Thank You TATA STEEL 20